Environmental Scrutiny Committee

ENVIRONMENTAL SCRUTINY COMMITTEE

12 FEBRUARY 2010

Present: County Councillor Wakefield (Chairperson); County Councillors Aubrey, Clark, McKerlich, Jackie Parry, Pickard and Walsh

Apologies: County Councillor Delme Bowen (Executive Member for Traffic and Transportation)

43 : MINUTES

The minutes of the meeting held on 12 January 2010 were approved by the Committee as a correct record and signed by the Chairperson.

44 : DECLARATIONS OF INTEREST

The Chairperson reminded Members of their responsibility under Article 16 of the Members’ Code of Conduct to declare any interests in general terms and complete personal interest forms at the start of the meeting and then, prior to the commencement of the discussion of the item in question, specify whether it is a personal or prejudicial interest. If the interest is prejudicial, Members would be asked to leave the meeting, and if the interest is personal, Members would be invited to stay, speak and vote.

County Councillor Aubrey declared an interest as a non-executive Director of Cardiff Bus. He was able to remain in the meeting and take part in the debate.

45 : 2010-2011 BUDGET PROPOSALS

The Chairperson advised that in line with the Council’s Constitution, this Committee had the opportunity to consider the outline Executive Budget proposals and those items in the draft budget that fall within the responsibility of this Committee, and make any recommendations to the Executive Business meeting on 18 February 2010, for consideration prior to the Executive’s final recommendations being considered by Council on 25 February 2010.

To support this scrutiny exercise, Members had received copies of: • Savings Proposals for the appropriate Service Areas identifying the elements of risk; • Capital Programme 2010/11 to 2014/15; • Financial Pressures Summary of bids but forward by individual service areas as appropriate and the level of risk if these are not accepted; and • Extracts from the draft Corporate Plan 2010-2013, which were circulated under a separate cover.

Members were also advised of the findings of the 2009 Ask Cardiff survey, which contained two contained two questions relating to the Council’s budget priorities. The survey showed that community safety and crime prevention was the top priority for Cardiff residents, followed by attracting and retaining jobs and then by litter, street cleansing and recycling.

On 9 February 2010, two briefings open to all Members of each of the Scrutiny Committees had been held at which Councillor Mark Stephens, Executive Member, Finance & Service Delivery, and Christine Salter, City & County Treasurer, had set out the overall budget proposals and the impact of the settlement from the Welsh Assembly Government. The Chairperson welcomed Councillor Stephens and Ms Salter who were present at this meeting to assist with answering any questions during the Committee’s scrutiny of the budget.

Economy, Enterprise and Infrastructure

The Chairperson welcomed Paul Carter, Operational Manager, Transport Policy and Development and Peter Dawson, Operational Manager, Development who had been invited to make a presentation on the budget proposals for the service areas within Economy, Enterprise and Infrastructure and that fall within the remit of this Committee, full details of which were set out in the report.

Paul Carter set out the salient points of the budget proposals for the Economy, Enterprise and Infrastructure service. The total controllable budget for the service was £23 million (including £11.8m Concessionary Travel Grant). Targeted savings of 7.5% equated to a total saving of £857k. Savings of £653k had been accepted, which equated to 76% of the targeted savings. Of the total savings of £653, the key savings proposals for Transportation amounted to £423k. The remaining £230k fell within the remit of the Economy and Culture Scrutiny Committee.

The key savings proposals for Transportation included:

• a reduction in bus operator costs • contribution from Section 106 funding for the Baycar bus service and other subsidised services • a reduction in non-statutory bus services • a reduction in printing costs for the Concessionary Travel scheme • a reduction in energy costs • staffing savings • a reduction in the public information budget • a reduction in non-statutory maintenance of traffic signal equipment • additional income from Events Park and Ride

Paul Carter informed the Committee of the Capital Programme Bids (proposed capital expenditure) for 2010/11. Those bids were detailed as follows:

Ongoing Schemes • Cardiff East Park and Ride – bid of £200k • Llanederyn Interchange – bid of £200k

Expenditure Funded by Grants or Contributions • Sustainable Travel City Grant (to provide sustainable modes of transport and provide a range of infrastructure improvements to facilitate City Region connectivity) - £6.960m • Sustainable Travel City Grant (additional funding for City Centre improvements) - £3.4m • South East Wales Transportation Alliance (SEWTA) - £1.91m • Schemes funded by planning gain (S106) - £6.034m (£1.7 for highway/transportation schemes)

Capital Schemes Funded from Revenue Savings/Income Generation/Other Income • Civil Parking Enforcement (CPE loan) - £614k – set up costs to provide for signage and road lining

The Committee was advised that the Sustainable Transport City initiative was a key priority in the Council’s Corporate Plan. Paul Carter gave brief details of the increased range of the alternative travel options being developed and planned improvements to the transport infrastructure. These included:

• St Mary Street pedestrianisation • Bus Box Scheme • Phase II of the Cardiff East Park and Ride • Phase II of the Llanederyn Interchange • Freebie Bus • Oibike Scheme • Cycle network improvements to Pont y Werin to be operational in Summer 2010 • Regional transport infrastructure • Development of a car club • Improvements to the bus network • Information kiosk/screens in the city centre • Civil parking enforcement

The Chairperson thanked the Officer for his presentation and invited Members to reflect on the information received relating to the draft Budget. As part of the discussions the following matters were raised:

• Members queried whether the £614k set aside for implementation of the Civil Parking Enforcement scheme was sufficient. Officers were confident that this figure was sufficient to roll out the CPE scheme. The Committee was advised that 40 wardens would be employed initially and it was envisaged that the service would be more efficient and more responsive to issues on the ground than at present. The Business Plan was flexible enough to allow for the CPE scheme to adapt to the needs of the service. The £614k was a loan which would need to be repaid over five years although officers hoped that it could be repaid sooner. The CPE scheme would ultimately be self financing.

• Members raised concerned regarding traffic congestion in the east of the City along the Newport Road corridor. The Members asked whether any progress had been made on the proposals to provide a rail link from the St Mellons/Rumney areas into the City Centre. Officers explained that the Cardiff East Park and Ride scheme had been successful in reducing congestion in the East of the City. Phase II of the scheme would allow space for an additional 900 vehicles. Also, a proportion of the funding from SEWTA would be utilised to provide additional improvements to bus routes on Newport Road.

Members were advised that officers were investigating the possibility of using the underutilised freight railway lines between Cardiff and Newport to provide a passenger service. Such as service would be separate from the high speed rail line. This however, was a long term project and officers felt that commuters in the East of the city should be encouraged to use the bus services in the short term.

• Members sought clarification on whether using Section 106 funding to subsidise bus services was valid and sustainable. Officers explained that using Section 106 funding to subsidise local bus services was an entirely valid use of such resources. It was hoped that these bus services would eventually be self financing. Therefore it may be necessary to review the level of subsidy in the future.

Members were advised that the budget setting process had provided an opportunity to review all supported bus routes and to cease supporting such services where, for example, competition existed, such as the service to Leckwith.

• there was a discussion regarding the costs of the Concessionary Fare Scheme. It was envisaged that the cost of printing Concessionary bus passes would fall as all those eligible who had applied for a pass had now received one. In future, only passes would only be provided to those persons attaining 65 years of age or as replacements to lost or damaged passes.

• the Committee questioned what the grant funding from Sustrans was being used for. Officers advised that these funds were primarily focused in the City Centre, works connecting Pont y Werin to the cycle network and work undertaken in the Cycling Strategy.

• Officers were asked to guarantee that funding for improvements to the cycling network were not be used to undertake general improvements works. Officers assured the Committee that any works undertaken under the Sustainable Travel City banner were audited.

• the Committee was advised that the Council receives an annual dividend from Cardiff Bus of £250k which forms part of the Council’s general budget.

Highways and Waste Management

The Chairperson welcomed Councillor Margaret Jones (Executive Member Environment), Martin Hamilton, Chief Officer, Direct Services; Jane Cherington, Operational Manager, Waste Strategy; Guy Weinzweig, Operational Manager, Highways Operations, Phil Cadenne, Operational Manager, Asset Management and Dave Lowe, Waste Operations Manager who had been invited to make a presentation on the budget proposals for the services areas within Highways and Waste Management, full details of which were set out in the report.

Councillor Margaret Jones welcomed the opportunity to address the Committee. She stated that there had been much debate regarding value for money from the services areas within her portfolio.

Jane Cherrington and David Lowe addressed the Committee. The Committee was advised that the total proposed savings for the Waste Management service was £1.781m. These savings would be found through:

• Commercial income fees • Commercial income recovery • MRF sales income • Landfill tax savings • Reduction in overtime • Waste and cleansing service redesign • Closure of public conveniences

Members also received details of the Capital Programme for Waste Management in 2010/11 which was valued at £4.925m and included bids for:

• Waste infrastructure • Landfill capping and infrastructure • Land purchase for Prosiect Gwrydd • Growth of wheeled bin scheme • Recycling litter bins

The financial pressures in Waste Management were detailed as follows:

• Proposed value in 2010/11 of £20k for top up grant to city centre businesses to encourage take-up of the Assembly’s Community Toilets Scheme

• Proposed additional SWM Grant in 2010/11 of £1.469m for: - food waste processing - replacement bags/caddies - new kerbside recycling schemes – sweepings - kerbside caddy trail

The Committee was advised that the total proposed savings for the Highways service was £273k. These savings would be found through:

• Down grading post in Traffic Management • Transferring new Traffic Orders to Capital schemes • Reducing the bulk lamp change on principal roads • Voluntary severance across the service area

Members also received details of the Capital Programme for Highways in 2010/11 which was valued at £5.02m and included bids for:

• General Capital Funding - highway asset renewal - lighting renewals - bridge repairs • Local Road Safety grant - road safety casualty reduction schemes • Local Road Maintenance Grant - to address road maintenance backlog • Street Lighting - ITS Project to reduce energy and maintenance costs

The financial pressures in Highways were detailed as follows:

• Proposed value in 2010/11 of £298k for: - Construction of salt storage barn - Road maintenance revenue to balance reduction of road maintenance capital grant

The Chairperson thanked the Officers for their presentation and invited Members to reflect on the information received relating to the draft Budget. As part of the discussions the following matters were raised:

• the Committee were disappointed that a response was yet to be received from the Executive to their report on public conveniences in July 2009. Councillor Jones apologised and stated that the report was used to inform decisions during the budget setting process.

• the Committee discussed the £700k proposed to be achieved by merging the waste collection and street cleansing services. The Committee felt that this was a substantial saving. Members agreed that they would like the opportunity to consider a report in April/May on the proposed merger before it takes place and to consider a further report in December post-merger.

• Members questioned whether £30k allocated for the provision of litter/recycling bins replacement was sufficient. The Committee was advised that this figure was additional funding and the capital allocation would be topped up with grant funding from the Tidy Towns initiative.

• the Committee asked whether any improvements to the signage for public conveniences in the City Centre could be investigated. The Committee was advised that such public realm improvements would form part of the City Centre Strategy.

• it was noted that the income streams from the sale of recyclables were improving.

• the Committee discussed the lack of progress in identifying a site in the north of the city at which to establish a recycling centre. The Committee sought assurances that work is still ongoing to identify a site and that funding would be made available should the search prove successful.

• the Committee discussed the amount of funding allocated to the maintenance of the authority’s road network. Whilst they were please that £250k of additional funding had been accepted, the Members felt that there was an urgent need to invest a significant amount of capital in order to upgrade the highways infrastructure.

• a discussion took place regarding voluntary severance. The Committee was advised that, in the case of voluntary severance, a business case needed to be made which would need to demonstrate savings could be made over a five year period. Particular emphasis was being placed on reducing management and administration overheads and to avoid reducing front line staff. The Committee was ensured that the ability to deliver services would not be affected.

Strategic Planning and Environment

Councillor Margaret Jones introduced a presentation from Sean Hannaby, Chief Strategic Planning and Environment Officer. Councillor Jones stated that, due to the economic downturn, the Strategic Planning and Environment Service had experienced a drop in income from fees across all departments during the past year. Councillor Jones forecast further difficulties during 2010/2011.

The Chairperson welcomed Sean Hannaby who made a presentation on the budget proposals for the service areas within Strategic Planning and Environment and that fall within the remit of this Committee, full details of which were set out in the report.

Sean Hannaby advised the Committee that, of £680k proposed savings, £595k had been accepted representing a 6.59% reduction in the budget. These savings, in the main, would come from voluntary severance and the deletion of vacant posts. The measures to achieve the proposed savings are summarised as follows:

• Voluntary Severance of PO4/5 Principal Planning Officer • Deletion of vacant Sc5/SO2 post in Regeneration • Reorganisation of Public Analyst Lab • Loss of 5 posts in Building Control • Reduction in overhead budget for Strategic Planning • Reduction in overtime in Building Control • Increased bereavement fees • Increased registration fees • Reduction in Planning Improvement budget • Reduction in accommodation and overheads in Building Control • Reorganisation of Trading Standards including the lost of 1.5 full time posts • Loss of Team Leader and Planner posts in Neighbourhood Renewal • Voluntary early retirement of Emergency Planning Support Officer • Deletion of vacant posts and voluntary severance of posts in Public Protection • Deletion of vacant posts and voluntary severance of posts in Pollution Control • Deletion of vacant OM post in Environmental Health

Members also received details of the Capital Programme for Strategic Planning and Environment in 2010/11. Bids had been made for:

• Completion of environmental improvements at Delta Street and Cowbridge Road East - £100k • Improvements to street, properties and shop fronts in Clifton Street - £450k • Redevelopment of community facilities, retail provision and development opportunities at the Maelfa Centre - £100k • Leaseholder compensation resulting from Loudon Square regeneration scheme - £375k • Improvement to facilities at Thornhill Crematorium and other bereavement infrastructure - £600k (met from reserves) • To progress the Adamsdown and North Grangetown renewal areas £320k • Programme of works to improve the public realm in the City Centre £4.089m • Community Building Grants Scheme promoting investment in public buildings £100k • Community Investment Schemes for improvement of local shopping centres and neighbourhood renewal schemes £1.002m • Extend burial space at Western Cemetery - £30k • Replace cremators, mercury abatement/filtration equipment at Thornhill Cemetery - £900k

Sean Hannaby also advised the members of the proposed increases to a range of fees charges across the Strategic Planning and Environment service.

The Committee received details of the residual risks that had been identified as a result of the accepted reductions to the budget. These risks were outlined as follows:

• Realignment of S106 admin contributions – reduction in anticipated income as a result of the economic downturn • Neighbourhood Renewal Posts – the service implements objectives set out in statutory strategies. The lost of these posts will impact on service delivery • Planning Improvement budget – reduction of budget resulting in delay to further improvements • Trading Standards Officers – reduced capacity to educate, advise and enforce and attend events in the City • Environmental Health deletion of OM posts – reduced capacity at senior management level • Pollution Control/Public Protection posts – reduced capacity in Contaminated Land and Health and Safety

• Members were concerned at numbers of staff due to be lost, particularly in Trading Standards and Environmental Health and the effect this would have on service delivery. Members were advised that 22.5 full time posts would be lost and 1 full time post would be gained. This had been achieved by restructuring the service areas. The Senior Management Team would also be reduced from 5 posts to 2 posts. Sean Hannaby stated that delivering the service would be challenging but was confident that it would be achievable.

• Members sought clarification on some of the proposed savings. Savings were proposed from the same budget but were not set out sequentially within the report, for example items 213 and 224. Members expressed the opinion that it would be more beneficial to consider items from the same budget at the same time in order to gain a clearer understanding of the proposed savings and their effect on the service.

• the Committee also considered that it would be useful for the final budget papers to include a summary of the number of posts lost through voluntary severance on a service area by service area basis.

AGREED – that the Chairperson on behalf of the Committee write to the Executive outlining the Committee response to the scrutiny of the draft budget proposals which come under the remit of this Committee, and request that these comments and observations be considered by the Executive at their Business meeting on 18 February 2010. The comments and observations to be taken into consideration were as follow, that :

Economy, Enterprise & Infrastructure

(1) during the meeting Members questioned if the £614,000 set aside in the 2010/11 Capital Programme would be sufficient to deliver a first class Civil Parking Enforcement scheme. They were satisfied with the response, however, they would like the opportunity to review the final business plan before the scheme is implemented in July 2010.

Highways & Waste Management

(2) the Committee were disappointed with the delay in providing a response to the Public Conveniences Report. They hoped that the Executive Committee had taken onboard the comments and that a full response to the report would be provided as soon as possible.

(3) the Committee noted that the service area was aiming to save £700,000 through the merger of cleansing and waste operations. Members were encouraged that such substantial savings had been proposed, however, they would like to consider the details of this proposal at Committee before the merger takes place.

(4) the Committee were concerned with the lack of progress in establishing a recycling centre in the north of the City, and felt that delivery of such a facility was vital to help meet the challenging waste targets facing the Council. They would like assurances that work is still ongoing to identify a site and that funding would be made available should the search prove successful.

(5) the Committee were pleased that that £250,000 of financial pressures were accepted for road maintenance, however, Members feel that while the Council are doing all that they can in financially difficult times there is an urgent need to provide a significant capital sum to upgrade the highways infrastructure.

Strategic Planning & Environment

(6) the Committee were concerned at the number of posts that are due to be lost in Trading Standards and Environmental Health. They felt that the current financial climate was a very bad time to lose these key front line positions.

In addition to the service area budget comments Members made the following observations in relation to the format of the budget papers:

(7) the Committee felt that it would be useful for the final budget papers to include a summary of the number of posts lost through voluntary severance on a service area by service area basis.

(8) Service area savings were not always sequentially set out in terms of the actual budget from which they arose. For example, line items 213 and 224 in the Strategic Planning & Environment savings section were taken from the same Strategic Planning budget of £2,228,000. Members felt that all of the items from this budget should have been next to each other so that the Committee would have a clearer understanding of the total savings from that particular budget.